The government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) schemes by three months until December 31, 2026. Both schemes were set to end on Wednesday, but the government has provided relief to exporters through this extension. According to government sources, the extension comes after the Commerce Ministry sought a longer extension and higher allocation for the schemes. The government is working on a stronger framework for the export tax-remission schemes and plans to extend the existing schemes until the new framework is finalised. The extension was implemented following internal discussions and inter-ministerial consultations, with the Commerce Ministry currently in discussions with the finance ministry on the extension details.
The scheme, which was launched in 2021, provides significant financial support to exporters through tax refunds. According to the official statement, refunds under the scheme range from 0.3 per cent to 3.9 per cent of export-related costs. The budget allocation for 2025-26 stands at ₹18,232 crore, representing a substantial increase from the ₹10,000 crore budget allocated for the current fiscal year. The schemes reimburse exporters for embedded non-creditable central, state and local levies paid on inputs, with RoSCTL specifically covering textile exports while RoDTEP covers all other products. The refund rates under the scheme range from 0.3% to 3.9%, depending on the exported product, as reported by Rediff Moneynews.
The Ministry of Textiles has extended the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme for exports of apparel, garments and made-ups by another three months up to December 31, 2026. As per the ministry statement, the scheme has been extended from 1 October to 31 December 2026, at the existing rates and under the prevailing guidelines. The RoSCTL scheme, operational since 7 March 2019, provides remission of eligible embedded State and Central taxes and levies that are not refunded through other mechanisms. The extension will ensure policy continuity and predictability for exporters, while sustaining the competitiveness of India's labour-intensive and value-added apparel and made-ups sector in an increasingly competitive global trading environment.
During 2025-26, the Scheme benefited more than 15,400 exporters across over 444 districts, with the beneficiary base comprising predominantly MSMEs. The wide geographical reach underscores the scheme's role in supporting a dispersed manufacturing ecosystem and strengthening the participation of small and medium exporters in global markets. Despite the extension, industry experts believe the schemes deserve a longer duration to provide adequate certainty for exporters. Ajay Srivastava, founder of Delhi-based think tank Global Trade Research Initiative (GTRI), said that such short extensions defeat the scheme's core purpose as exporters finalise orders months before shipment and cannot factor tax refunds into their pricing without knowing whether the scheme will continue. The schemes are intended to make exports tax-neutral by remitting domestic taxes and levies that exporters cannot otherwise recover, addressing competitive concerns in the current challenging export environment.
